Debt picked up by bank after 3 and a half years of no contact. Looking for advice

treblec

Hi all.

My wife had a credit card from Lloyds TSB (as they were) a good while ago, perhaps about 10 years ago if not longer and eventually got into some trouble with it.

She fell behind with payments and the debt was transferred over to a company called Scotcall, who i know through asking a couple of questions on here are not the nicest company.

Initially she paid £100 a month, and yet the remaining balance doesn't seem to have gone down very much if not anything, however in May 2013 Scotcall sent a letter saying to stop any more payments and their client will be in touch shortly to recommence payments.

Initially i thought this would be Lloyds themselves, yet nothing at all materialised and no contact was ever made.

Today she received a letter from Lloyds acknowledging the debt and asking for full payment which is about £10800, obviously which is not affordable. The debt amount is exactly the same as per the Scotcall letter from May 2013 so no additional charges have been placed on the account.

My wife's circumstances have now changed and she is unable to work because of illness, and has been for a couple of years. This is unlikely to change at all in the near future and so any payments would have to reflect this new lower income. We are not in any way trying to avoid the debt but before she rings up and asks, i was hoping there would be some solid advice from members here about how best to tackle the issue?

Obviously contacting Lloyds and speaking to someone about it but i dont want to say the wrong thing or offer up something i shouldnt in light of not really knowing the best course of action.

I posted a thread about this just after the letter was sent to us, but nothing has been heard of since hence the lack of reply stating such, here it is if it helps, i've had to edit slightly as it won't permit me to post a link on my thread

https://forums.moneysavingexpert.com/discussion/4642201/help-needed-with-scotcall-debt-please

Many thanks

sourcrates

Hi,

Ok, two things, firstly, has there ever been a period of at least 6 years without her making any payments ?

If yes, the account may be statute barred.

If no, she should do a CCA request, and see if they can comply.

Creditors, debt collectors, cannot add interest or charges once an account defaults, unless the original agreement allows them to.

Most CCA regulated agreements don't allow this.

treblec

Sourcrates.


Many thanks for the reply.


With regards to your questions then no I don't think its been anywhere near 6 years since a payment has been taken, more like around the time the last letter was sent by Scotcall, say May 2013 so I would think the last payment would have been April 2013 as a rough guide.


With respect to a CCA request, I take it this will be back direct with Lloyds bank now as they've just sent this letter out regarding payment?


If so are there any template letters etc on here I should use or should it be done over the phone first off?


I was just wondering as its the bank who originally had the debt and not a collection company I may have to deal with it differently?


I saw this thread (again I had to space it out as I cannot post links)


http:// forums.moneysavingexpert.com/showthread.php?t=709639



but wondered if its still applicable as its a few years old?

Apologies if this is simple stuff unfortunately I feel a little overwhelmed in getting started.


Thank you

fatbelly

treblec wrote: »

With respect to a CCA request, I take it this will be back direct with Lloyds bank now as they've just sent this letter out regarding payment?


If so are there any template letters etc on here I should use or should it be done over the phone first off?


I was just wondering as its the bank who originally had the debt and not a collection company I may have to deal with it differently?

A CCA request (specifically a request under s77-79 of the consumer credit act) has to be done in writing, with a £1 payment. You would send it to Lloyds as they still own the debt.

National debtline have a template letter

https://www.nationaldebtline.org/EW/sampleletters/Pages/Information-about-your-agreement-under-the-Consumer-Credit-Act-%28sole-name%29.aspx

treblec

Thanks.

The letter here just says the kind of address as "Recoveries" with a PO box number and a Brighton Postcode.

Would this be where i send the CCA request to or is there a specific department usually within a banking organisation.

There really isn't any other info on the letter other than an opening balance and a closing balance of exactly the same amount. No date or description, just a request for the outstanding balance in full.

The only other piece of info on the letter is under a small heading saying Dispute resolution in which it asks that we should try and solve the problem with Lloyds first and if not satisfied can contact the Ombudsman which is why i am a little hesitatnt and very apologetic about asking what may be obvious questions on here.

If it helps i could type the letter out leaving out the ref number and exact balance etc?

Shakin_Steve

I could be wrong but, as the original debt is ten years old, and has been passed to a debt recovery company, I very much doubt that lloyds would have a copy of the original agreement. As above, that should definitely be your first move.
Please don't panic, the debt is not going to get any bigger, and there is a lot you/your wife can do to make any eventual payments small enough to cope with. You are doing the right thing by not ignoring the matter, which some people might be tempted to do.

sourcrates

treblec wrote: »

Thanks.

The letter here just says the kind of address as "Recoveries" with a PO box number and a Brighton Postcode.

Would this be where i send the CCA request to or is there a specific department usually within a banking organisation.

There really isn't any other info on the letter other than an opening balance and a closing balance of exactly the same amount. No date or description, just a request for the outstanding balance in full.

The only other piece of info on the letter is under a small heading saying Dispute resolution in which it asks that we should try and solve the problem with Lloyds first and if not satisfied can contact the Ombudsman which is why i am a little hesitatnt and very apologetic about asking what may be obvious questions on here.

If it helps i could type the letter out leaving out the ref number and exact balance etc?

Send the CCA request to the address on the letter.

Address it to the compliance officer, it is there responsibility to pass your request back to the original creditor to deal with.

That's all you need to do for now.

treblec

Thanks. Should this be sent recorded or special delivery even with the address being a PO box?

Thanks

sourcrates

treblec wrote: »

Thanks. Should this be sent recorded or special delivery even with the address being a PO box?

Thanks

Some people say send recorded, but in reality these companies get there mail delivered in bulk, there is no distinction between normal mail and recorded mail (although the post office will not admit this) so it doesn't really matter.

treblec

Thanks all.


I have sent the CCA template letter off this afternoon with a blank £1 postal order enclosed.


I take it I should hear something back by say the 14th December.


I will update the thread as things progress, is there anything else I should be doing in the meantime in case they come back with the CCA?


Again I am sorry if the questions are thick and fast and perhaps annoying to seasoned members but I will endeavour to follow any advice given and truly appreciate any help with this.


Thank you all again

National_Debtline

Hi

I think it’s just going to be a case of waiting now. Your next move will depend on how they respond. Keep us updated.

James
@natdebtline